[ExI] Inflation graph

Mirco Romanato painlord2k at libero.it
Sat Nov 2 19:47:53 UTC 2013


Il 31/10/2013 21:39, Kelly Anderson ha scritto:
> On Thu, Oct 31, 2013 at 2:11 PM, spike <spike66 at att.net
> <mailto:spike66 at att.net>> wrote:
> 
>     As automation accumulates, the price of manufactured goods does
>     decline.  It doesn’t wreck an economy if prices decline.

> I am not an economist,

This is obvious...

> but if prices decline, you are better off holding
> onto cash, rather than investing it.

It depend.
I never read something about you complaining about the descending prices
of computers and electronics appliances and likes. Or complaining
against the reduction in price of Lasik surgery or likes.
Or complaining about the reduction in price of oil, gold, platinum,
food, etc.

Your utility measure could vary a lot.

> That is a recipe for disaster
> because investment would stop, and the markets would lose their
> liquidity. That would be a bad thing.

Basic necessities would be sold and bought anyway.

Many other prices would consistently fall (and this is not a bug, it is
a feature).

It is not a bug when homes are affordable by younger generations with a
normal job in few years of SAVINGS instead of being forced in 30 years
of servitude by the banks to buy an overvalued house at, formerly, cheap
interest rates, then being evicted because they are no more able to pay
their mortgages and the homes left smoldering.

Do you understand a lot of current high prices are totally dependent on
money printing and easy credit?

> The price of technology going down isn't a problem because we always buy
> the new stuff and the old stuff obsolesces fast. If we get off Moore
> significantly, then old stuff is just about as good, and then we have a
> problem because deflation means something even in the tech world then.

This sentence of yours is so wrong I really have no idea where to start
to address it.

Mirco








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